Weekly Unemployment Claims: Down 16K, Beats Forecast

By Jill Mislinski

Here is the opening statement from the Department of Labor:

In the week ending September 24, the advance figure for seasonally adjusted 16,000 from the previous week’s revised level. The previous week’s lev initial claims was 193,000, a decrease of el was revised down by 4,000 from 213,000 to 209,000. The 4-week moving average was 207,000, a decrease of 8,750 from the previous week’s revised average. The previous week’s average was revised down by 1,000 from 216,750 to 215,750.

The advance seasonally adjusted insured unemployment rate was 1.0 percent for the week ending September 17, unchanged from the previous week’s unrevised rate. The advance number for seasonally adjusted insured unemployment during the week ending September 17 was 1,347,000, a decrease of 29,000 from the previous week’s revised level. The previous week’s level was revised down by 3,000 from 1,379,000 to 1,376,000. The 4-week moving average was 1,381,250, a decrease of 22,500 from the previous week’s revised average. The previous week’s average was revised down by 1,000 from 1,404,750 to 1,403,750.

This morning’s seasonally adjusted 193K new claims, down 16k from the previous week’s revised figure, was better than the Investing.com forecast of 215K.

Here is a close look at the data over the decade (with a callout for the past year), which gives a clearer sense of the overall trend.

As we can see, there’s a good bit of volatility in this indicator, which is why the 4-week moving average (the highlighted number) is a more useful number than the weekly data. Here is the complete data series.

Here’s a copy of the above chart, but zoomed in, so the COVID spike isn’t as prominent.

The headline Unemployment Insurance data is seasonally adjusted. What does the non-seasonally adjusted data look like? See the chart below, which clearly shows the extreme volatility of the non-adjusted data (the red dots). The 4-week MA gives an indication of the recurring pattern of seasonal change (note, for example, those regular January spikes).

Because of the extreme volatility of the non-adjusted weekly data, we can add a 52-week moving average to give a better sense of the secular trends. The chart below also has a linear regression through the data.

Here’s a look at a sample of year’s claims going back to 2009.

For an analysis of unemployment claims as a percent of the labor force, see this regularly updated piece The Civilian Labor Force, Unemployment Claims and the Business Cycle. Here is a snapshot from that analysis.

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Editor’s Note: The summary bullets for this article were chosen by Seeking Alpha editors.